Pattern Energy Enters Agreement to Sell K2 Wind Facility

Cleantech Investing

Pattern Energy (NASDAQ:PEGI; TSX:PEGI) announced that it has entered into an agreement for the sale of its minorty owned interest, K2 Wind Power facility for a price of C$216 million. The company said that the 90 MW wind facility would be sold to a consortium of investors led by Axium Infrastructure. As quoted in the …

Pattern Energy (NASDAQ:PEGI; TSX:PEGI) announced that it has entered into an agreement for the sale of its minorty owned interest, K2 Wind Power facility for a price of C$216 million.

The company said that the 90 MW wind facility would be sold to a consortium of investors led by Axium Infrastructure.

As quoted in the press release:

“K2 was a good candidate for recycling given our minority interest. The sale demonstrates the confidence of Canadian investors in the Ontario market. The proceeds provide us an opportunity to redeploy capital into more accretive opportunities – improving our CAFD without issuing common equity,” said Mike Garland, CEO of Pattern Energy. “We have now sold two assets, El Arrayán and K2, at significant premiums to the multiple at which we trade in the markets.”

Pattern Energy expects to record a pretax gain in the range of approximately US$65.0 million to US$69.0 million on the sale, subject to fourth quarter results. Pattern Energy is also entitled to receive the cash flows from the facility through the end of calendar 2018.

K2 is a 270 MW wind power facility located in the Township of Ashfield-Colborne-Wawanosh and commenced commercial operations in June 2015. The facility is a joint venture between Pattern Energy, an Axium-led consortium and Capital Power Corporation. Capital Power Corporation has also agreed to sell its interest in the facility to the Axium Consortium under the same agreement.

The Company intends to use the net proceeds from the sale for general corporate purposes, which may include: funding investments, acquisitions or the repayment of indebtedness.

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